Cape Town-based Golden Arrow Bus Services (GABS) saved R1.8 million in one financial year thanks to robust energy-efficient practices such as optimized maintenance and fuel efficiency through driver training and a modernized fleet.
This was a result of the company’s energy efficiency practices that led to a saving of 6 767 153 kWh (energy equivalent) for the year which qualifies it for the 12L Tax Incentive (Section 12L).
The Section 12L application process which is implemented by SANEDI (South African National Energy and Development Institute) applies to all energy carriers (not just electricity) with the exception of renewable energy sources. To claim for the deductions, an organizations’ savings measurements must be kWh equivalent.
“Golden Arrow Bus Services is an excellent example of an organization that doesn’t necessarily spring to mind when one thinks of qualifying Section 12L businesses. The company has shown tremendous commitment to saving on energy through efficient processes that consistently deliver results year-on-year and is a worthy recipient of the tax incentive’s various benefits,”
arry Bredenkamp, General Manager at SANEDI
GABS is a scheduled passenger transport operator for the City of Cape Town and operates over 1 000 buses during peak hours, serving 1 300 routes. To improve fuel efficiency, the company consistently introduces modern and optimised buses to its fleet.
The MAN LION EXPLORER buses – added to the GABS fleet – feature DO8 and D20 common rail engines which operate at improved fuel efficiency. Additionally, these modern buses use lightweight components that further reduce fuel consumption (per kilometre) and also have optimised passenger-carrying capacity, again saving on fuel and subsequent energy.
To assess GABS’ energy savings and subsequent eligibility for the Section 12L Tax Incentive, Catalyst Energy Solutions (CES), a division of Catalyst Incentive Solutions, performed the requisite measurement and verification of the energy efficiency savings.
It was found that GABS’ modernised fleet and other energy efficiency practices led to a reduction of 2.5 percent energy consumption per year and mitigated 2 014 tCO2e (Tonnes of carbon dioxide equivalent) GHG (Greenhouse Gas Emissions) annually. This all led to savings of 6 767 153 kWh (energy equivalent) and R1.8 million after tax benefit.
The Section 12L tax incentive has since its inception in March 2015 Section 12L has delivered more 24.747 terawatt-hours (TWh) in energy savings which equates to a total gross rebate of R19 903 billion to local organisations.
The regulations for Section 12L set out the process and methodology for claiming an allowance for energy savings, a baseline (benchmarking) model and reports must then be compiled and submitted SANEDI for approval.